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Craft beer will come a higher price with upcoming Pennsylvania tax

PhillyVoice
Novermber 29, 2018

Though there's no shortage of craft breweries in and around Philadelphia, the state recently issued a tax bulletin that will mean a higher price attached to Pennsylvania-made brews.

Though sales tax on beer manufacturers has been part of the state's tax code for decades, a recent bulletin released by the Pennsylvania Department of Revenue highlights that a sales tax must also be collected when a beer manufacturer sells the product to a person without the purpose of redistributing it. In other words, breweries and tasting rooms should be collecting and remitting a sales tax.

The tax – the enactment of which was recently postponed and will begin July 1, 2019, instead of Jan. 1 – will be levied by the Pennsylvania Department of Revenue and put a new tax on malt and brewed beverage manufacturers selling out of their own establishments.

This will specifically target the holders of a "G" license, which is designated to breweries. Those license holders are subject to a 6 percent tax on every retail dollar sold once the tax takes effect. That would be 42 cents added to a $7 craft beer, for example.

The tax will be felt mostly by breweries and taprooms, but it doesn't apply to other bars or restaurants that also serve craft beer. This means brews made and sold at places such as Evil Genius or Tired Hands would be subject to the tax, but that same beer sold at Johnny Brenda's or Standard Tap would not have it.

According to the York Daily Record, craft and independent breweries contributed $6.3 billion toward the Pennsylvania economy in 2017. PA's craft breweries also produced more beer in 2017 than any other state.

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The tax will be felt mostly by breweries and taprooms, but it doesn't apply to other bars or restaurants that also serve craft beer.

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This means brews made and sold at places such as Evil Genius or Tired Hands would be subject to the tax, but that same beer sold at Johnny Brenda's or Standard Tap would not have it.

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Originally posted by bigdeal:

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This means brews made and sold at places such as Evil Genius or Tired Hands would be subject to the tax, but that same beer sold at Johnny Brenda's or Standard Tap would not have it.

Ok....I thought I understood what was going on up to this point, but that sentence makes no sense. Why would the same product be taxed at one establishment but not the other?

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Originally posted by bigdeal:

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This means brews made and sold at places such as Evil Genius or Tired Hands would be subject to the tax, but that same beer sold at Johnny Brenda's or Standard Tap would not have it.

Ok....I thought I understood what was going on up to this point, but that sentence makes no sense. Why would the same product be taxed at one establishment but not the other?

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Originally posted by PASig:
These FRIGGEN' IDIOTS in the Democrat party that just want to tax, tax, tax everything. I just don't understand this mentality!

We in Pennsylvania have a BOOMING craft beer scene with brewpubs and tasting rooms sprouting up all over the state, but now Governor Wolf, a Democrat who naturally never saw a tax he didn't like has decided that craft brewers who sell beer where they make it will pay a 6% on every dollar sales tax to the state.

OF COURSE this will just be passed on to us, Joe Consumer.

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Craft beer will come a higher price with upcoming Pennsylvania tax

PhillyVoice
Novermber 29, 2018

Though there's no shortage of craft breweries in and around Philadelphia, the state recently issued a tax bulletin that will mean a higher price attached to Pennsylvania-made brews.

Though sales tax on beer manufacturers has been part of the state's tax code for decades, a recent bulletin released by the Pennsylvania Department of Revenue highlights that a sales tax must also be collected when a beer manufacturer sells the product to a person without the purpose of redistributing it. In other words, breweries and tasting rooms should be collecting and remitting a sales tax.

The tax – the enactment of which was recently postponed and will begin July 1, 2019, instead of Jan. 1 – will be levied by the Pennsylvania Department of Revenue and put a new tax on malt and brewed beverage manufacturers selling out of their own establishments.

This will specifically target the holders of a "G" license, which is designated to breweries. Those license holders are subject to a 6 percent tax on every retail dollar sold once the tax takes effect. That would be 42 cents added to a $7 craft beer, for example.

The tax will be felt mostly by breweries and taprooms, but it doesn't apply to other bars or restaurants that also serve craft beer. This means brews made and sold at places such as Evil Genius or Tired Hands would be subject to the tax, but that same beer sold at Johnny Brenda's or Standard Tap would not have it.

According to the York Daily Record, craft and independent breweries contributed $6.3 billion toward the Pennsylvania economy in 2017. PA's craft breweries also produced more beer in 2017 than any other state.

Link

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Originally posted by bigdeal:

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This means brews made and sold at places such as Evil Genius or Tired Hands would be subject to the tax, but that same beer sold at Johnny Brenda's or Standard Tap would not have it.

Ok....I thought I understood what was going on up to this point, but that sentence makes no sense. Why would the same product be taxed at one establishment but not the other?

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Originally posted by roberth:
Economics by Democrats

1. Be ignorant if you can
2. If you can't be ignorant be destructive

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Originally posted by PASig:

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Originally posted by bigdeal:

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This means brews made and sold at places such as Evil Genius or Tired Hands would be subject to the tax, but that same beer sold at Johnny Brenda's or Standard Tap would not have it.

Ok....I thought I understood what was going on up to this point, but that sentence makes no sense. Why would the same product be taxed at one establishment but not the other?

Evil Genius is the brewer. They also sell beer on on the premises like virtually all PA craft brewers now do with a "tasting room" or a bar there. Some have food, some just sell the beer.

Johnny Brenda's is a bar who buys beer from Evil Genius but they do not make their own beer, they are just a bar.

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Originally posted by AirmanJeff:
I've noticed a concerted effort over the last few years to attack craft brewers whenever possible. The big beer companies must have some very busy lobbyists.

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I hear your gasoline tax will be higher next year, too. Highest in the nation, I believe.